Saab (OTCMKTS:SAABY) Announces Quarterly Earnings Results

Key Points

• Saab reported quarterly EPS of $0.13, alongside an 8.05% net margin and 15.87% return on equity; operating profit and revenue reportedly exceeded analyst expectations.
• New orders more than tripled year over year to 65.8 billion Swedish kronor, driven largely by Ukraine-related Gripen fighter-jet and GlobalEye surveillance-aircraft agreements, strengthening the company’s backlog and revenue visibility.
• Shares traded at $32.61, with a market capitalization of $34.91 billion and a P/E ratio near 46.6. Analysts’ consensus rating is Moderate Buy, though the elevated valuation leaves the stock vulnerable if order execution or margins disappoint.

Saab (OTCMKTS:SAABY - Get Free Report) issued its quarterly earnings data on Friday. The company reported $0.13 earnings per share for the quarter, Zacks reports. Saab had a net margin of 8.05% and a return on equity of 15.87%.

Saab Stock Performance

OTCMKTS:SAABY traded up $0.75 during midday trading on Friday, reaching $32.61. The stock had a trading volume of 56,825 shares, compared to its average volume of 140,364. The stock has a market capitalization of $34.91 billion, a P/E ratio of 46.59 and a beta of -0.15. Saab has a 1-year low of $23.29 and a 1-year high of $40.77. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.23 and a quick ratio of 0.82. The firm's fifty day simple moving average is $31.71 and its 200-day simple moving average is $30.37.

Key Stories Impacting Saab

Here are the key news stories impacting Saab this week:

• Positive Sentiment: Orders more than tripled: Saab reported new orders of 65.8 billion Swedish kronor, compared with 20.9 billion kronor a year earlier. The increase was driven largely by major Ukraine-related Gripen fighter-jet and GlobalEye surveillance-aircraft agreements. Defense giant Saab sees orders triple after Gripen fighter jet deal with Ukraine
• Positive Sentiment: Profit and revenue beat expectations: Saab reported a sharp year-over-year rise in third-quarter sales and operating profit, with operating earnings exceeding analyst forecasts. The company also reported quarterly EPS of $0.13, an 8.05% net margin and a 15.87% return on equity. Defence group Saab's Q3 operating profit beats expectations
• Positive Sentiment: Ukraine defense demand strengthens the backlog: Reports indicated that the Gripen order helped drive a sharp rise in bookings, improving Saab’s revenue visibility and supporting expectations for continued expansion in its aerospace and defense businesses. Saab’s Q3 orders triple on Ukraine Gripen E and GlobalEye deals
• Neutral Sentiment: Saab Australia launched a space-operations management platform for military users. The product expands Saab’s technology offering, although its near-term financial contribution was not disclosed. Saab Australia launches space operations management platform
• Negative Sentiment: At roughly 45.5 times earnings, SAABY already carries a demanding valuation. Sustaining the stock’s advance may depend on Saab converting the large order surge into profitable deliveries without execution delays or margin pressure.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on SAABY shares. Royal Bank Of Canada upgraded shares of Saab to a "hold" rating in a report on Tuesday, August 11th. Kepler Capital Markets raised shares of Saab from a "strong sell" rating to a "hold" rating in a research report on Monday, July 20th. Pareto Securities raised Saab from a "hold" rating to a "strong-buy" rating in a research report on Thursday, June 25th. Finally, Barclays raised Saab from a "strong sell" rating to a "strong-buy" rating in a report on Monday, August 10th. Two equities research analysts have rated the stock with a Strong Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy".

Saab Company Profile

Saab AB is a Sweden-based defense and aerospace company that develops, manufactures and supports products and services for military and civil security customers. Its business includes combat aircraft, weapons systems, sensors, command-and-control solutions, training systems and naval platforms.

The company's Aeronautics business produces the Gripen fighter aircraft and related systems, while its Surveillance operations provide airborne early-warning, radar, electronic-warfare and sensor technologies, including the GlobalEye system.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.